Probe Into Legal Problems Of Forward House Mortgage

Forward house mortgage is a widely—adopted financing means in the building' transaction in the developed countries and areas. Its prominent characteristics is that the purchaser can get the loan from the bank by using the unfinished house as pledge which is called : "Louhua Mortgage" . The model was introduced and used in mainland in 1990s. It has played an important role in flourishing our real estate market. But presently there is not a respective law applicable for this kind of loan that has been legislated in our country .The scholars also disagrees with each other in the theory of its nature. On the basis of protecting the safety and order of forward house transaction, the paper discusses the system of forward house mortgage.The paper consists of four parts. Before the text, there is a prelude, and after the text, there is an epilogue. The prelude touches background and meanings why the author chose this topic for discussion.Part Ⅰ deals with the derivation and development of the forward house mortgage. It is originated from Anglo-American legal systems and developed as a way of guarantee. According to connotation of forward house and mortgage, the author makes the definition of the forward house mortgage. Next the author points out that the forward house mortgage is in fact a financing means by which the purchasers obtain the loan as the object of pledge.The part Ⅱ describes the nature of forward house mortgage .The author pointsout that such system in fact can connect the means guarantee which existed with other sorts of contracts, though it has similarities with real estate, warranty of title and transferred guarantee. Then the writer analyzes the function of the system and development of our traditional pledge. At last, the author explains the relevant relationship accordingly in practice.Part III studies the legal practices forward house mortgage in our country. Firstly, the paper introduces the pre-registration abroad, aiming to expound its meaning of protecting the safety and order of forward house transactions. Secondly, analyzes impracticability of duplicate pledge and substantive conditions of forward house transaction. Thirdly, the paper explains the risks and preventive measures. Fourthly, the author studies the determination of parties and their interest equilibrium in the issues of forward house mortgage.Part IV, the writer analyses the problems which existed in practice in forward house mortgage, such as the high-price of house ,the low period of forward house mortgage, the weak service idea , the breach of seller, deficiency of regulations etc .Then makes some suggestions on making laws and construction of relevant regulations.